Unit Test Answers

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Tariffs and subsidies are both examples of

A
monetary restrictions for the domestic producer.
B
economic benefits for the consumer.
C
economic benefits for the international producer.
D
incentives—one positive and one negative.
23

Which statements accurately describe a country’s currency? Select all that apply.The currency is easily divisible.The currency can be used in any other country.The currency has a value that can change.The currency has denominations.The currency has a value that must stay the same.

A
The currency is easily divisible.
B
The currency can be used in any other country.
C
The currency has a value that can change.
D
The currency has denominations.
E
The currency has a value that must stay the same.
24

most likely

F
Free trade helps every nation.
F
Free trade has drawbacks for participants.
F
Free trade will eliminate poverty.
F
Free trade must be carefully monitored.
25

In regard to trade, the United States

A
imports goods and services only.
B
exports goods and services only.
C
does not import or export goods and services.
D
imports and exports goods and services.

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